Incorporating Risk Management into Your HR Policy

HR audits are designed to help your organization focus its attention on its human resource management practices, policies, procedures, processes, and outcomes by providing you with a structured and systematic series of questions about key compliance, risk management, internal auditing, and human resource management issues. As a process, HR audits are designed to help your organization identify potential and actual problem areas, help assess the effectiveness of current HR management activities, help assess weaknesses in HR internal control processes, and help assess human capital strategic and compliance related risks. HR audits should additionally provide suggestions for corrective action.

Importantly, HR audits should consider human capital related risks and opportunities from an enterprise risk management (ERM) perspective. That is, your HR audits should take a holistic approach in assessing human capital risks and attempt to indicate the interrelationships and interactions between HR and other management and organizational issues.